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Lesson 3.5 Logistics in International Business

This lesson focuses on logistics in international business, covering the comparison of product delivery to local, national, and international markets, as well as key factors influencing delivery methods. It discusses supply chain management, vertical and horizontal integration, and the role of third-party logistics (3PLs) in enhancing efficiency. Additionally, it highlights containerization and various factors affecting transportation mode choices.

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chungshiuting
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38 views5 pages

Lesson 3.5 Logistics in International Business

This lesson focuses on logistics in international business, covering the comparison of product delivery to local, national, and international markets, as well as key factors influencing delivery methods. It discusses supply chain management, vertical and horizontal integration, and the role of third-party logistics (3PLs) in enhancing efficiency. Additionally, it highlights containerization and various factors affecting transportation mode choices.

Uploaded by

chungshiuting
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Lesson Date: ……………………………………………

Name: ……………………………………………………..

BBB4M Interna+onal Business Fundamentals


Lesson 3.5 Logis+cs in Interna+onal Business
Learning Goals: By the end of this lesson you will be able to

• 1.Compare the logis7cs of delivering a product to a local, a na7onal, and an


interna7onal market.
• 2. Describe the key factors that influence the ways in which a company may deliver
its product to an interna7onal market.
• 3. Compare the advantages and disadvantages of different modes of transporta7on
for distribu7ng a product to different world markets.
Homework and Assignment a;er today’s lesson

• Assignment 3 – Combine part 1,2 and 3 together and finish your final report.

1
Lesson 3.5 Logis7cs in Interna7onal Business

Defining Logis?cs

• Logis7cs consists of the acquisi7on, transporta7on, and storage of materials from the
point of origin to the point of consump7on.

Forward and Reverse Logis?cs

Supply Chain and Supply Chain Management

• The supply chain is the sum of all ac7vi7es involved in moving raw materials,
processed goods, and finished products into an organiza7on, and moving the semi-
processed or finished goods out of the organiza7on toward the end consumer.
• Supply chain management (SCM) is the overseeing of informa7on, materials, and
finances as the product moves through its supply chain, typically from supplier to
manufacturer, to wholesaler, retailer, and finally, consumer.

2
Lesson 3.5 Logis7cs in Interna7onal Business

Ver?cal Integra?on

• Ver7cal integra7on is the control of supply chain by owning the whole supply chain.

Horizontal Integra?on

• Horizontal integra7on is the expansion by acquiring compe7tors.

Third-party Logis?cs (3PLs)

• Some companies use third-party logis7cs (3PLs) to co-ordinate the supply chain,
meaning they outsource supplier co-ordina7on and distribu7on func7ons to logis7cs
companies that can perform these ac7vi7es beXer or more cost effec7vely.
• Third-party logis7cs increases the number of links in the supply chain, but reduces
management control of everyday logis7cs opera7ons.
• Less control and more supply chain partners mean that managers can spend more
7me on overall supply chain management in order to an7cipate and eliminate any
supply chain problems.

3
Lesson 3.5 Logis7cs in Interna7onal Business

Comparison

Containerisa?on

• Containeriza7on is the u7liza7on of standard-sized reusable metal boxes to store and


ship freight.
• Containers fit on standard truck beds and railway flatcars, and container ports use
standardized equipment to liZ them onto ships.

4
Lesson 3.5 Logis7cs in Interna7onal Business

Intermodal Shipping and Transporta?on Modes

Factors affec?ng the choice of mode of transporta?on

• Type of product (perishable such as food or flowers, non-perishable,


dangerous/hazardous)
• Availability of goods (and 7me needed to source them)
• Access to suppliers (foreign or domes7c)
• Time needed to deliver goods (to customer)
• Customs requirements (informa7on/documents)
• Size of the shipment
• The method of transporta7on for shipping
• Shipping cost

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